Workers at a factory applying "three-on-site" model during social distancing orders.

At the 4th session of the National Assembly Standing Committee meeting in Hanoi yesterday, Dung said four out of 12 socio-economic targets have not yet reached the set plan due to the pandemic.

He added though the economic growth in the first six months reached 5.64 per cent compared to 2020, the fourth outbreak had a serious impact, decreasing the third-quarter growth by 6.17 per cent, dragging the growth rate of the first nine months’ GDP to only 1.42 per cent.

He added the macroeconomy suffered potential risks caused by disruptions in some production chains, supply chains, and goods circulation, meanwhile the labour and employment situation was severely affected.

At the meeting, chairman of the Economic Committee Vu Hong Thanh said the Government should foster the implementation of fiscal, monetary-credit and social security policies to support people and production and businesses and individuals negatively affected by the pandemic.

He also emphasised checking and supervising the implementation and effectiveness of all the packages.

National Assembly Chairman Vuong Dinh Hue noted that the solution for the last months of 2021 is to clarify priorities and set suitable scenarios for 2022.

As head of the MPI, Dung said the dual goal of effective pandemic prevention and economic reopening was planned for 2022 when the growth rate of GDP would reach about 6 to 6.5 per cent.

He added the economic restructuring plan for the 2021-2025 period should be implemented synchronously, across sectors, between the central and local levels in the manner of renewing the growth model towards science, technology and innovation.

Dung said restructuring should take institutional improvement, digital transformation and innovation as breakthroughs, restructuring the economy, develop the urban economy, promote regional linkages, urban-rural linkages and renew the growth model of key economic regions and cities.

Meanwhile, mobilising, allocating and effectively using all resources for development, in which internal resources were strategic, fundamental, long-term, decisive, closely combined with external resources, were important, said the minister.

He also emphasised linking economic growth with cultural and social development, environmental protection and restoration, adaptation to climate change, and assurance of national defence and security.

Dung said the MPI’s plan proposed five groups of tasks and solutions to restructure the economy including completing the restructuring of the system of credit institutions, public investment, the State budget, and public non-business units according to the set objectives, developing market types, improve the efficiency of resource allocation and use, developing the business force to improve competitiveness, internal capacity, and self-reliance of the economy, restructuring the economic space, develop the urban economy, strengthen regional linkages, urban-rural linkages, and promote the role of key economic regions and large cities in promoting economic growth and promote growth model innovation.

The last task was to upgrade the value chain of industries based on the application of scientific and technological advances, innovation, digital transformation, green economy development, and enhanced adaptation to climate change, he said.

During the review of the plan for the 2021-2025 period, the Economic Committee said that the development of the plan needed to overcome limitations and weaknesses of the previous period and should be more practical and effective.

The committee proposed the Government study and supplement some contents such as improving the efficiency and growth quality of a number of economic sectors.

As the committee said the urban economy was the mainstay of the national economy, exploiting to the fullest the advantages of urban areas, enhancing the economic competitiveness of the system of cities. Vietnam should focus on expanding the urban economic development space by region, promoting the advantages of multi-dimensional connectivity as well as piloting specific mechanisms and policies, building new models to create breakthroughs in urban economic development.

At the same time, building an independent and self-reliant economy, adapting to the fluctuations of the world economy, actively integrating into the world, improving the efficiency of foreign affairs and the position and prestige of Vietnam in the international arena was also needed.

It also said the country need plans to fully exploit the advantages of new-generation FTAs ​​to promote domestic economic reform efforts, effectively using and allocating resources and ensuring green growth to link economic growth with emphasis on environmental protection and effective response to climate change.

Source: Vietnam News

Ministry forecasts Vietnam’s GDP growth this year at 3%-3.5%

The Ministry of Planning and Investment has projected the country’s gross domestic product (GDP) growth in 2021 at 3%-3.5%, down 0.5 percentage points from the rate forecast in September.

GDP to reach 3.5-4 per cent this year

The country’s GDP this year is expected to reach 3.5-4 per cent if the COVID-19 pandemic is controlled in September and a 'new normal' achieved from the fourth quarter, said Minister of Planning and Investment Nguyen Chi Dung.